Commerce Awarded $47.5 Million Federal Grant to For Critical Infrastructure Improvements

Graphic courtesy of Grid United HELENA, Mont. – The Montana Department of Commerce announced today it has been awarded a $47.5 million economic development grant for southeastern Montana from the U.S. Department of Energy.

Commerce’s Southeastern Montana Transmission Siting and Economic Development Initiative will sub-grant funding to Rosebud, Custer and Fallon Counties and the Northern Cheyenne Tribe to help mitigate the impact of construction of the North Plains Connector transmission line. Eligible projects will include infrastructure updates, such as roads, water, sewers; emergency services like ambulances and fire halls; and other projects related to workforce and infrastructure development.

“Access to a steady supply of affordable and reliable energy is critical for our communities,” Governor Gianforte said of this award. “I’m grateful to the Montana Department of Commerce for ensuring all Montana communities impacted by this investment are made stronger.”

The infrastructure grant, which will be administered by Commerce, also includes funding for three full-time employes at the agency, as well as for one-third of an industry development manager position. Commerce should receive funding by mid-2025; money should be available to Rosebud, Custer and Fallon Counties and the Northern Cheyenne Tribe for grants starting in early 2026 once construction begins on the transmission line.

The $47.5 million award was based primarily on the number of miles the transmission line will go through each county, as a percentage of the whole. The line does not go through Northern Cheyenne tribal lands; however, the county commissioners of Rosebud, Fallon, and Custer Counties agreed to earmark 10% of the funds for the tribe in order to include the entire region in the project.

“This grant is going to help the communities of southeastern Montana update their infrastructure to handle the increased impacts from transmission line construction,” said Paul Green, Director of the Montana Department of Commerce. “While the construction workers will come and go, the investments in these areas will be felt for generations to come.”

The three counties and the Northern Cheyenne Tribe are the only entities that can apply for the grants. They can apply on behalf of cities or organizations, like housing authorities, in their areas. These eligible applicants are only required to supply a 5% match of the funds they request.

Commerce’s SM-TSED initiative is one of just 20 projects across 16 states selected by the DOE to receive up to $371 million to accelerate the permitting of high-voltage, interstate transmission projects. These projects will also support community infrastructure projects along major new and upgraded transmissions lines. These TSED grants will help advance at least 16 high-impact transmission lines across the country supporting the deployment of reliable and affordable energy for consumers and creating good-paying jobs.

For more information about the grant, contact Canon Luerkens, Industry Development Manager at Commerce, at 406-841-2034 or cluerkens@mt.gov.

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